All Forum Posts by: Penny Clark

Michele is spot on that screening is the BEST way to tenant proof a home and charging a sizable security deposit (within the law) is a nice idea. I've seen many a landlord pour money into improvements and then see their investment deteriorate when they allow D class tenants possession. That's when they come to me and ask me to fix it.

Remember this motto: " 99 percent of your ability to get paid is dependent upon how well you screen your tenant"

Good luck!

@Lauren A. I would limit your deductions to unpaid rent, making necessary repairs to restore the property back to move in condition (patching holes in walls, cleaning stained carpets, etc (provide receipts for labor and materials),and cost to deep clean the unit. Late fees and even court costs (unless stated specifically in your lease they can be deducted from the deposit) should be secondary to these deductions. You can get a collection company or file a small claims case to recover late fees and court costs.

Here's a few ideas:

- Offer to pay more of the closing costs

- Shorter time window to close (less than 20 days for conventional is better than average of 30-40).

- Shorten inspection to 5 days or waive it altogether 

The key is to find out what the seller wants without sacrificing too much on your end. What is important to the seller? It may not be price. It may not be a shorter inspection period. For all anyone knows it might be a longer closing period because they want time to move and haven't found a new place yet. 

A letter introducing yourself is a good suggestion too because not many buyers do that - at least not investors. Tell them what features you admire about the home and how you'd like to improve it. 

Good luck!

@Jackie Botham, NOW is the time to learn the tenant landlord laws in your state and learn to use the law to your benefit. Next, review the lease and paperwork that came with the sale. It would be nice if the PM company provided payment history or any 3 day notices issued but they may have only been willing to release that to the owner. I would send your intro letter outlining where to send the rent by what date and in what form, how to place a service request and who to contact for emergencies. You have to know if they are under an existing lease or if their lease has reverted to a month to month. If they are on a month to month, then you can send them proper notice of a rent increase which will be a separate notice. In the intro letter you can mention the option to sign a new lease with increase or give 30 day notice to vacate. For the rent increase notice serve it however state law allows. Do not include the notice in the intro letter. If tenants are already late, send them a 3 day pay or quit or whatever notice is used by your state. I would do this after the intro letter. That way tenant can't say they were confused about where or whom to send rent to.

With inherited tenants, you often have to retrain them. You don't beg, bargain or coax them. They do not have a long track record with you as tenants so their is no reason to be lenient or understanding about late rent. Inherited tenants will take advantage of new property management companies and owners if allowed. If these tenants are pushed, they'll either comply by first paying late fee and eventually pay on time or they'll stonewall you and you'll have to kick them out, so prepare for that financially by contacting an experienced landlord tenant attorney.

In future purchases, always ask for leases, estoppel certificates, payment records before the deal closes. And remember, even good tenants will test you and will need to be trained.

Good luck!

Good point, John. I just assumed the landlord would know to provide copies of expense receipts to tenant with deposit return.

I would take them to court or assign what they owe you to a collection agency. Landlords who get rolled by their wayward tenants and don't report them do a disservice to the industry. Sometimes it is because they are unaware of what their rights or don't want to face a judge in court. Learn the laws in your state and know them better than any of your tenants. Enforce them. Security deposits disputes (at least in California) is the most common reason tenants threaten to take a landlord to court. If you know the laws in your state, you will know what you can and cannot deduct from it (owed rent, repairs from damage beyond wear and tear, etc.). You will also know how many days you must return it by and what evidence is required in order to deduct the expense (receipts).

Also in future purchases with inherited tenants, you will want to ask the current owner for their payment histories, estoppel certificates, etc.

When it comes to working with tenants you inherit, you often have to retrain them. And if you screen them yourself, do not neglect the important step of conducting a thorough rental history - not only evictions but look for a history of late pays and screen for three day notices issued by previous landlords. 

Better luck with your next tenant!

@Young Kwon, in most states the landlord is required to give some form of notice -except in emergencies- before entering the premises even after a tenant's lease expires and it reverts to a month to month - which is probably what your parents are on now. As far as showing the property to potential buyers, it seems that there was a notice given and the landlord may have that right - check with an attorney. In the meantime, here is a link to a PDF doc I found on New Jersey tenant rights you might find helpful.

Good luck!

https://www.lsnjlaw.org/Publications/Pages/Manuals/TenantsRights.pdf

Alex is right and next time don't make promises based on what another person (in your case, the handyman) promises. We've been there and now we're trying to turn our "pig's ear property" into a silk purse based on what others promised they would do. To avoid these future gaffs, consider starting your tenant out on a month to month. Doing so, will preserve your landlord rights better and allow you to make changes without the tenant's consent. 

Good luck and welcome to landlording 101!

You could either provide them to your residents to have on site or keep them in storage until needed. If you give them to residents, instruct them where to store the containers. As long as the containers are opaque and filled with treated water, they should be good for a year or two without changing out the water. 

@Christine Swaidan, as J Beard suggested gift cards are a good idea and your tenants will remember your kind gesture when deciding whether or not to renew their lease. However, you may want to consider taking preventative action in these types of emergencies. Purchase one or two 5-7 gallon opaque water containers (you can get them at Wal-Mart for about $8-$9) and provide them to your tenant. Fill the containers with water to have on hand for situations such as this. This will also save you time if the water is shut off for longer periods than a day and you find yourself having to truck water in from Alhambra.